Explore Aurum kuberx Click here to explore

/Glossary/What is a Kick Out Clause?

What is a Kick Out Clause?

A Kick Out Clause gives a seller or lessor latitude to terminate a tentative agreement if a more favorable prospect arises. Typically included in contingent deals, this clause ensures the current occupant or buyer meets set conditions—like removing financing contingencies—within a specified window. If they fail, the seller can “kick them out,” accepting new offers.

  • Contingent Scenarios: Often used where occupant conditions (e.g., pending loan approval) may delay final closing.
  • Time-Bound: The occupant must respond swiftly once notified, either waiving contingencies or exiting.
  • Owner Safeguard: Minimizes prolonged waiting for incomplete deals while other opportunities arise.
  • Balanced Flexibility: Occupants can still finalize if they resolve contingencies rapidly.

Kick Out Clauses preserve the right to proceed with a stronger candidate, reducing the risk of missed transactions or indefinite stalls.

Unlock the Latest in Real Estate

Reach Out to Us

Data that drives action. Insight that inspires action. Technology that empowers action.“

Aurum Proptech

© PropTech Pulse 2025, All rights reserved.

Terms of Use and Privacy Policy